PeopleSoft's Accounting Draws Critics

Allegations by Oracle(ORCL Quote) that a controversial anti-takeover strategy being employed PeopleSoft(PSFT Quote) is causing PeopleSoft to book revenue improperly might have some teeth, two accounting experts say.

The independent accounting experts think the issue might even warrant a look from the Securities and Exchange Commission. Oracle is trying to acquire PeopleSoft in a $7.3 billion hostile takeover bid.

"It's a prominent public company that's involved in an acquisition that is in an industry that has had problems with revenue recognition in the past," said Charles Mulford, director of the DuPree Financial Analysis Lab and an accounting professor at the Georgia Institute of Technology. "At the minimum, they [SEC officials] have to look at the transaction." ...